News

Daily Newsletter - 8 September 2022

Summary

FIC (1)
Macroeconomic (4)
Financial (3)
Investment (3)
Legislative (3)
European News (1)
Social (2)
FIC 
FIC launching event of the Va Urma project with the participation of the Prime minister

FIC launched the 2022 edition of Va Urma (https://vaurma.ro) with the participation of the Prime Minister of Romania, Mr. Nicolae Ciuca, together with members of the Government and Parliament, international institutions, and economic leaders. The event was a first step in setting country directions agreed and supported by the authorities, representative international institutions, and the business environment. The participation of the Prime Minister confirms the partnership and the relationship of trust between the Government of Romania and the Foreign Investors Council. 

The "Va Urma" project represents an economic development model for the next 20 years that includes several scenarios. Va Urma emphasises the multiple advantages of combining private (foreign and domestic) and public investments together with measures aiming to stimulate digitisation and innovation. The key elements of the programme comprise: improving institutional capacity and the efficiency of state-owned companies; protecting human capital by facilitating access to jobs, education and health; transforming the energy mix in the directions established by the Green Deal at European level and the development of energy infrastructure.

FIC launching event Va Urma project with the participation of the Prime minister 

The Foreign Investors Council launches the "Va Urma" project

Ciucă: The government will establish an agency dedicated to foreign investments that will function under the prime minister

Gov’t to launch agency for foreign investments

Ciucă: The government will launch an agency dedicated to foreign investments that will function directly under the PM

Nicolae Ciucă: Romania, more attractive after joining the Schengen Area and being accepted into the OECD

The government will launch an agency dedicated to foreign investments. It will work under the prime minister

Nicolae Ciucă: Accession to the Schengen Area and the reception of our country in the OECD will increase our attractiveness

Prime Minister Nicolae Ciucă: ’We committed not to come up with new taxes and not to increase the existing ones and we kept our

Nicolae Ciucă: "We are the Government that supports investments. We allocated the largest amount in the last 32 years"

Prime Minister Ciucă: Accession to the Schengen Area and admission to the OECD will increase Romania’s attractiveness

Ciucă: The accession to the Schengen Area and the reception of our country in the OECD will increase our attractiveness, but als

Ciucă: The government will launch an agency dedicated to foreign investments that will function directly under the prime ministe

NICOLAE CIUCĂ: "The accession to the Schengen Area and the reception of our country in the OECD will increase our attractiveness

VIDEO Ciucă is convinced that we will be "invaded" by foreign investors: "Accession to the Schengen Area and the reception of ou

Ciucă: The accession to the Schengen Area and the reception of our country in the OECD will increase our attractiveness,
Ciucă: The accession to the Schengen Area and the reception of our country in the OECD will increase our attractiveness,

Ciucă: The government will launch an agency dedicated to foreign investments that will function directly under the prime ministe

Another agency is being established: it will function under the Government and manage foreign investments

Ciucă: The government will establish an agency dedicated to foreign investments that will function under the prime minister

Ciuca: The government will launch an agency dedicated to foreign investments that will work directly under the prime minister

Good country for investment

Nicolae Ciucă: "We are the Government that supports investments. We allocated the largest amount in the last 32 years"

Ciucă: Accession to Schengen and our reception in the OECD will increase the attractiveness of the country

Nicolae Ciucă: We will launch an operational agency dedicated to foreign investments

Ciucă: The government will launch an agency dedicated to foreign investments that will function directly under the PM

Ciucă: We have undertaken to be the Government that supports foreign investments

Ciucă: We have undertaken to be the Government that supports foreign investments

Macroeconomic 
INS reconfirmed Romania’s economic growth in H1/2022
On Wednesday, 7 September, the National Institute of Statistics (INS) reconfirmed the 5.3% economic growth for Q2/2022 and the 5.8% advance for H1/2022, compared to the similar periods of 2021. Most of the advance, namely 5.2%, came from households’ final consumption, followed by changes in inventories, with 4.7%, while net exports had a 3.9% negative contribution. The biggest share in GDP formation in the first half of 2022 belonged to households’ consumption, with 70%, followed by investments, with 22%, while net exports had a negative influence of 11%.
BCR has revised upwards its economic growth estimate for Romania for 2022
BCR has revised upwards its economic growth estimate for Romania for 2022, from 5.1% to 6%. The bank’s economists do not rule out a technical recession, but say that there are low chances for this scenario to materialize. Ciprian Dascălu, BCR’s chief economist, has added that BCR’s economic growth forecast for H2/2022 may differ from the one that will be recorded, given the government’s plans to inject the equivalent of 3.9% of GDP into the economy in the last five months of the year to reach its deficit target.
Economic growth in EU and euro area exceeded initial estimates in Q2/2022
Euro area economy grew more than initially estimated in Q2/2022, supported by consumer and government spending. GDP was up 0.8% against the previous three months - more than the previous estimate of 0.6%. Economic growth in the overall EU also exceeded initial estimates, the GDP having increased by 0.7% compared to the first quarter.
Government debt stood at 48.3% of GDP in June 2022
Government debt stood at RON 621.828 billion (48.3% of GDP) in June 2022, compared to RON 577.142 billion (48.8% of GDP) at the end of 2021, according to data centralized by the Ministry of Finance. Medium- and long-term debt was RON 600.182 billion in June, and short-term debt amounted to RON 21.646 billion. Government securities accounted for most of this debt, namely RON 511.954 billion. Loans totaled RON 97.775 billion. RON-denominated government debt stood at RON 273.466 billion, euro-denominated government debt was RON 290.513 billion and USD-denominated debt amounted to RON 56.507 billion (equivalent).
Financial 
UniCredit Bank increases interest rates on RON-denominated deposits again
UniCredit Bank has decided to further increase interest rates on RON-denominated deposits for individuals, self-employed professionals, Authorized Natural Persons (PFA) and companies with turnovers below EUR 1 million. As a result, starting from 5 September, individual clients will benefit from interest rates of 8% per year for 12-month term deposits in RON, of 7% per year for 6-month term deposits and 6% per year for 3-month term deposits made through Mobile and Online Banking.
Raiffeisen Bank launches a program allowing SMEs to obtain loans of up to EUR 500,000
Raiffeisen Bank has launched "factory GROW", a personalized scaling model that can be used by entrepreneurs to obtain loans of up to EUR 500,000 to develop their businesses on other markets, to expand their business model or innovate, the bank announced on Wednesday. The module provides entrepreneurs with a free, personalized scaling strategy, based on growth objectives, support to identify the directions they should focus on, but also the necessary tools to manage the changes in their business.
tbi bank launches a financing solution for students who want to stay in the West Gate Studios campus
Tbi bank, present on the Romanian market, has announced that it has launched a financing solution allowing students to cover the full cost of accommodation in the West Gate Studios campus in the west of Bucharest, at the beginning of the academic year, and to repay it later, in monthly instalments, with zero interest and fees. The West Gate Studios private campus, located in the West Gate Business District, includes 800 studios and apartments with a total capacity of 1,600 beds, and students have access to a swimming pool, fitness room, an event space, a restaurant, a library, parking, dry cleaning or private medical services.
Investment 
La Fântâna has invested EUR 2 million in an automated bottling line
La Fântâna, a distributor of watercooler systems, a company owned by the Swedish investment fund Oresa Ventures and by Romanian entrepreneur Cristian Amza, has announced that it has invested EUR2 million in an automated bottling line at its plant in Tălmaciu (Sibiu County). The investment will streamline the process of bottling water in two types of packaging - spring water in reusable 19-litre bottles (for watercooler dispensers) and spring water in reusable 8-litre bottles for the residential segment, company officials have indicated.
Government approves rehabilitation and modernization of former Administrative Palace in Călăraşi
Government approved, during the meeting on Wednesday, 7 September, the technical-economic indicators for the rehabilitation and modernization of the Social-Cultural Center (former Administrative Palace) in Călăraşi. The value of the investment exceeds RON 77 million, according to a press release issued by the Ministry of Development, Public Works and Administration. The center, built in 1898, is a historic monument of national importance included in the List of Historic Monuments.
Galaţi City Hall to modernize of one of the busiest boulevards in the city
Galaţi City Hall has announced that it will invest nearly RON 64 million for the modernization of one of the busiest boulevards in the city. To this end, the municipality has launched a tender for the public procurement contract for the project "Modernization of George Coșbuc Boulevard, Phase 1 - road works and water and sewerage networks - design and execution", the deadline for submitting bids being 10 October 2022.
Legislative 
Government has approved the National Tuberculosis Control Strategy in Romania for 2022-2030
During the meeting on Wednesday, 7 September, the Government approved the draft Government Decision endorsing the National Tuberculosis Control Strategy in Romania for the period 2022-2030. It proposes a radical change in the way tuberculosis treatment services are organized, provided and paid for. According to the Ministry of Health, the document sets goals that continue efforts to control and eradicate tuberculosis and provides a framework for profound changes that accelerate progress and respond professionally to patients’ needs. The same as in the National TB Strategy for 2015-2020, reducing TB morbidity and mortality by maintaining adequate detection and treatment success rates remains one of the strategic priorities in the National TB Strategy 2022-2030 as well.
Chamber of Deputies adopted a draft law that increases the value of unemployment benefit
On Wednesday, 7 September, the Chamber of Deputies adopted a draft law that increases the unemployment benefit granted to people with at least one year of contributions to the public social security system. As a result, the value of the unemployment benefit will be equal to the value of the social reference indicator. The draft law thus amends Article 39 of Law 76/2002 regarding the unemployment insurance system and employment stimulation. The Chamber of Deputies adopted the draft law as the decision-making body. The law will therefore be sent for promulgation.
Government has amended the legislation regarding the sale of fertilizers in Romania
The Government Emergency Ordinance (OUG) establishing certain measures applicable to fertilizers management, as well as amending Law no. 232/2010 on the import of fertilizer samples and of fertilizers, was approved during the Government meeting on Wednesday, 7 September 2022, according to a press release. The cited source indicates that the adoption of the legislative measures stipulated in the normative act will contribute to the sale of fertilizers in Romania in accordance with the new European legislation in force.
European News 
Blue Air suspends flights from Romania
Low-cost carrier Blue Air suspended flights to and from Romania for a week after its accounts were blocked for failing to pay a fine. The government says the account freeze is no reason to suspend flights but the company said it is now unable to pay its suppliers. Prime Minister Nicolae Ciuca said more than 3,000 Romanian passengers were affected on Tuesday evening. The government said its priority is bringing Romanian citizens back home and explained it can use planes of national carrier Tarom for repatriation flights. The company’s announcement came unexpectedly and Romanian media showed videos of the chaos created by passengers at the main Bucharest airport, Henri Coanda.
Social 
Romania ranks first in CEE in terms of consumer spending on food products in physical stores
Romania ranks first in Central and Eastern Europe in terms of consumer spending on food products in physical stores, which accounts for 66% of total expenditures, according to a real estate investment company. According to the analysis, the share of online sales in Central and Eastern Europe has increased by 9%, to 15%, in the past five years and is expected to reach 20% within the next four years.
7 out of 10 Romanians allocate maximum EUR 25 per month to education
Nearly 70% of Romanians spend maximum EUR 25 per month on education, while 7% prefer to use free learning resources, according to a study conducted by an online education platform dedicated to entrepreneurs and labor market professionals. According to data published by Upriserz, only one in ten Romanians allocates large budgets to education, ranging from EUR 75 to EUR 167/month.